Sharp said it expects a net loss of ¥450 billion ($5.6 billion USD) for the fiscal year 2012

Sharp Corporation made a fairly unsurprising announcement in its most recent earnings report: it's a sinking ship.

Sharp, a Japanese supplier of LCD displays, said it will need to make a few business changes if it wants to stick around. One of these changes includes its new indium gallium zinc oxide (IGZO) technology, which uses less battery power than current screens.

The IGZO technology is expected to be used in many upcoming Sharp devices, and is seen as a core product. The company also noted that it will need to focus on small and medium-sized LCD screens in order to stay afloat.

But until IGZO gives Sharp the boost it needs (and expects), the company is sinking due to recent restructuring efforts. The company has cut employee salaries, eliminated many employees and even mortgaged factories and buildings.

In addition, in the most recent earnings report posted Thursday, Sharp said it expects a net loss of ¥450 billion ($5.6 billion USD) for the fiscal year 2012. This is a big jump from its previous expected loss of ¥250 billion.

Sharp was hoping for a save from potential partners like Hon Hai, which discussed a large investment in Sharp in return for an allotment of its shares. However, Sharp's stock has sunk in recent months and agreement talks have been drawn out.